Scotiabank analyst Hector Maya upgraded Femsa to Outperform from Sector Perform with a price target of MXN 204, up from MXN 151, after the company issued its plans around strategic options to unlock value that will come in the next 24-36 months. The changes, which include the full divestment of Heineken, divestment of Envoy Solutions, minority stakes and other non-core businesses and extraordinary dividends from excess cash, "beat ours and investors’ expectations," the firm stated. These options "dramatically change" the investment thesis and the concept the market had formed of the company, according to the firm, which now identifies Femsa as its top pick in LatAm retail.
Published first on TheFly
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